NEW YORK (TheStreet) -- Personal computers are a dying. I'm not attempting to reveal anything new with that statement. In fact, it has become a foregone conclusion for quite some time. PCs are now being replaced by mobile and more agile devices from Apple (AAPL), Google (GOOG) and Samsung.
Even Microsoft (MSFT) which many will contend was the true force behind the dominance of PCs has essentially thrown its hands up by announcing its Surface tablet -- essentially signaling to both HP and Dell that it's now every man for himself.
But nobody remembered to tell Lenovo (LNVGY.PK), China's largest PC maker, that it shouldn't be performing so well.In today's climate, over 90% of Lenovo's $30 billion annual revenue still comes from personal computers -- an impressive accomplishment on many levels. This includes being the brand of choice for one third of every PC sold in China, a market with a population of over 1 billion people. Yet the company remains a relative unknown among investors. Not many had even heard of Lenovo until it acquired IBM's (IBM) popular line of ThinkPad notebooks back in 2005. After growing its global PC sales last year by 4%, the company is now projected to surpass HP by 2013 in terms of PC production. But Lenovo does not seem content. It now has its sights set on the mobile device and tablet market. Can it take on Apple's iPad dominance? That's a pretty tall task. And considering the results of its most recent quarter, it seems that the company's efforts would be better served growing its margins instead of focusing its sites on Apple. But it's hard to not want to give it the benefit of the doubt -- particularly because it appears to have a sound management team with a good understanding of what drives revenue growth. Impressively, the company was able to growth its shipments by almost 25% in an environment when the global PC market saw a shipment decline of roughly 1%.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV